In a recent post on platform X, renowned analyst Ali Martinez shared an optimistic forecast about the value of XRP, based on technical analysis. He stated that if this coin can maintain its upward momentum and close above the important price level this week, the likelihood is that XRP will hit $4.8 – an all-time high.
Parallel channels and strong growth signals
Ali cited the parallel channel pattern to explain the next direction of XRP. This pattern forms when the price of an asset moves within a range between two parallel trend lines. The upper line of this channel is usually a strong resistance level, while the lower line is support. Breaking through either of these thresholds could signal a new, stronger trend.
According to the analysis, there are three types of parallel channels, depending on the slope of the trend lines. When the trend lines slope upwards, the pattern is called an 'upward channel'; conversely, when sloping downwards, it is a 'downward channel.' However, the most common type of parallel channel in the context of XRP today is the sideways pattern, indicating market consolidation before a strong breakout.
Looking at the chart that Ali shared, the price of XRP is currently close to touching the upper resistance line of the parallel channel. This indicates that the coin has had an impressive growth surge recently and if it continues to maintain this momentum, it could very well test the $3.3 level, an old resistance threshold. Notably, if XRP can close above $3 this week, it will open up the possibility of a strong breakout ahead.
“The weekly closing level above $3 could be the key for XRP to reach $4.8, setting a new record value.”
If this scenario occurs, XRP will record a growth of 56% compared to the current price, something that investors and analysts are very hopeful for.
Whale participation
An undeniable factor in the recent growth of XRP is the strong participation of 'whales' – investors with large asset volumes.
XRP is currently trading at $3.15, recording an almost 8% increase in the past 24 hours and over 29% in the past week. The trading volume in the last 24 hours reached $9.7 billion, an impressive figure. Analysts suggest that this upward momentum largely stems from the strong participation of major investors.
Ali noted that 'whales' have purchased a total of 2.2 billion XRP in the past two weeks. At the current price, this amount of XRP is worth over $6.9 billion.
Recently, XRP has maintained a steady rise, surpassing the $3 mark. Strong buying pressure seems to reflect the increasing interest of investors in this coin.
Several large transactions have been recorded and monitored by blockchain monitoring services. Whale Alert reported that 25.5 million XRP, worth approximately $73.6 million, were transferred to the Coinbase exchange. At that time, XRP was trading at $2.92. Additionally, on-chain data also showed that 33 million XRP were transferred from Upbit to an unidentified wallet and another 40 million XRP were moved between unidentified addresses.
According to analysis from Galaxy, XRP is approaching an important price threshold. This coin is about to enter the 'price discovery' phase, the stage when the asset surpasses all previous price levels. The last time XRP experienced this was in 2017.
Opportunities from futures contracts and ETF funds
Alongside the strong participation of whales, another important factor creating a significant wave for XRP is the substantial increase in the trading volume of this coin's futures contracts. According to data from CoinGlass, the open interest (OPI) of XRP has reached $9.25 billion, up 15% in the past 24 hours. This indicates that investors are increasing their use of leverage, raising expectations for a strong breakout to occur soon. The total open interest corresponds to approximately 2.93 billion XRP, indicating widespread market participation.
Another significant development is the SEC's approval of the ProShares Ultra XRP ETF under the ticker symbol UXPR. This fund will provide investment opportunities for those looking to leverage daily performance double that of XRP’s price, opening a new avenue for investors to access this coin. With the involvement of institutional investors and the potential to attract significant cash flow, this decision could create a strong buying wave, driving robust growth for XRP in the future.
